We're having a dream run, ING boss says

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The wealth management industry was experiencing some of the best
conditions in recent history, ING Australia's chief executive, Paul
Bedbrook, said yesterday.

Rising sharemarkets, a strong economy and lower claims on life
insurance helped the joint venture between Netherlands-based ING
and ANZ boost net profit by 52 per cent to $327 million last
year.

"These are very good times. It's the best it has been for many
years," Mr Bedbrook said.

"Repeating this result will be difficult. Clearly the financial
markets have performed better than expected and we earned higher
fee income on our funds under management. Claims experience was
also better than expected in our risk business."

ING Australia increased its share of the life insurance market
to 12 per cent from 11 per cent last year.

Mr Bedbrook said ING was not distracted about speculation that
ANZ would look to buy out its joint venture partner.

"That's an issue for shareholders," he said. "Within the joint
venture we are working extremely well together.

"From an ING point of view, they are extremely happy because
they are getting high returns."

Mr Bedbrook confirmed ING Australia had bid for financial
planning network Professional Investment Services, which eventually
did a deal with UK insurer Aviva earlier this year, valuing the
business at $200 million.

"These are bull market prices. When you pay a price like that,
everything has to go right.

"We would prefer to grow organically, but we will look at
opportunities. Everything looks expensive at the moment so we would
be more likely to buy small practices or boutique firms should the
opportunities arise."